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Dollar edges higher vs. rivals, U.S. data on tap

Published 02/05/2016, 05:39 AM
Updated 02/05/2016, 05:39 AM
© Reuters.  Dollar moves slightly higher ahead of nonfarm payrolls

© Reuters. Dollar moves slightly higher ahead of nonfarm payrolls

Investing.com - The dollar edged higher against the other major currencies on Friday, as investors eyed the release of a highly anticipated U.S. jobs report amid uncertainty over how much the Federal Reserve will be able to raise interest rates this year.

USD/JPY added 0.09% to 116.87.

The dollar had come under pressure after New York Federal Reserve President William Dudley said on Wednesday that the weakening outlook for the global economy and any further strengthening of the dollar could have "significant consequences" for the health of the U.S. economy.

Investors were looking ahead to the U.S. nonfarm payrolls report for January, due later Friday, for fresh indications on the strength of the labor market.

Data on Thursday showed that initial jobless claims rose by a larger-than-forecast 8,000 to 285,000 last week, but remained in territory usually associated with a firming labor market.

EUR/USD slipped 0.16% to trade at 1.1190.

Earlier Friday, data showed that German factory orders fell by 0.7% in December, compared to expectations for a downtick of 0.5%, after a 1.5% increase the previous month.

Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.37% at 1.4535 and was lower against the Swiss franc, with USD/CHF edging down 0.17% to 0.9913.

Meanwhile, USD/CAD slipped 0.23% to 1.3722, as declining oil prices dampened demand for the commodity-related loonie.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.17% at 0.7188 and with NZD/USD falling 0.13% to 0.6713.

In its monthly policy statement, the Reserve Bank of Australia left its November growth forecast unchanged, predicting the economy would grow at an average rate of 2.5% in 2016 and 3% in 2017.

However, the RBA underlined uncertainties in the labour market.

Separately, the Australian Bureau of Statistics said retail sales were flat in December, compared to expectations for a 0.5% rise and after a 0.4% uptick the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% at 96.65, off the previous session’s three-and-a-half month low of 96.27.

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